KUALA LUMPUR (Aug 26): Boutique developer Selangor Dredging Bhd is focusing on existing projects, including its RM250 million mixed-use development, Sqwhere, while postponing new launches.
“I think many developers are concerned about the current [state of the] economy.
“Our strategy in the next six months to a year is to sell a lot of our stocks [which are part of existing] inventories,” said Selangor Dredging managing director Teh Lip Kim, following its 54th annual general meeting today.
She said the company’s inventories are worth RM90 million.
Selangor Dredging is now most immediately focused on the private preview of The Cube, an office block that is part its Sqwhere project, in the fourth quarter of this year.
Teh said the first tower block in Sqwhere, launched last year, is over 90% sold. It comprises sovo (small office/versatile office) units and a retail area, and will be linked to the Kampung Selamat MRT station in Sungai Buloh by a covered bridge.
Teh revealed plans to build serviced apartments in Sqwhere, which should be launched in the first half of 2016.
For its financial year ended 31 March, 2015, Selangor Dredging posted a net profit of RM69.9million, an increase of RM4.7 million over the previous corresponding period. Turnover was RM400.5 million compared with RM377.3 previously.
“For our first quarter results ending 30th of June, we reported a profit of RM22 million, and we still have unbilled sales RM554 million, and the company’s financial position is approximately RM200 million in cash. With our total assets of close to RM1.5 billion, I think the company is good position,” said Selangor Dredging chairman Eddy Chieng Ing Houng
The company declared a 6% cash dividend for shareholders.
On the lookout for land
Meanwhile, Selangor Dredging is looking to replenish its land bank.
“While we remain conservative, we are looking for opportunites for more land [by selling] lands on our books to [acquire] more strategically located land,” said Chieng.
“We have the capacity to acquire well-located land, but we will be very selective,” he added.
The developer recently acquired an 18-acre parcel in Seri Kembangan located near the Bukit Jalil MRT station, and the Shah Alam Maju and the North Klang Valley Expressways.
Teh said the developer is studying the demographics of Seri Kembangan, with a view to develop a high-rise project there.
Selangor Dredging also owns 14 acres of land in Taman Melawati.
Its current projects in Malaysia are 70% to 80% sold, while those in Singapore are 95% to 100% sold, said Teh. For the latter, 85% of buyers are Malaysians.
Apart from Sqwhere, its current projects are The Hub, a commercial hub in SS2, Petaling Jaya, and Windows on the Park, a high-rise project in Cheras.
“From the company’s view, we must be optimistic but conservative, to ensure our financial resources go the distance.
While we believe the market is challenging, we are hoping for a rebound,” said Chieng.